Torrent Power Inks Pact with Japanese Firm JERA for LNG Supply

Torrent Power on Monday said it has inked a pact with Japanese firm JERA to get a supply of up to 0.27 MMTPA of LNG for 10 years, starting from 2027.

The LNG procured under this agreement will be strategically utilised by Torrent Power Ltd (TPL), including to operate its 2,730 MW combined cycle Gas-Based Power Plants (GBPPs) in India, to meet the country's rising power demand, support peak demand periods, and balance renewables, a company statement said.

It will also support the Torrent Group's City Gas Distribution (CGD) arm - Torrent Gas Ltd's (TGL), growing requirement of LNG to ensure a reliable supply of gas for households, commercial and industrial consumers and CNG vehicles.

According to the statement, TPL has signed a long-term Sale and Purchase Agreement (SPA) with JERA Co., Inc. (JERA), Japan's largest power generation company and a global leader across the LNG value chain for supply of up to 0.27 MMTPA of LNG for a period of 10 years starting from 2027.

Taking advantage of softness in LNG prices, TPL, along with TGL, further intends to explore medium- and long-term LNG procurement in response to the growing demand from its GBPPs and CGD networks, respectively, aiming to enhance its portfolio diversity and reliably meet the energy supply needs of customers, it stated.

Torrent Power, the ₹29,165 crore integrated power utility of about ₹45,000 crore Torrent Group, is one of the largest companies in the country's power sector with presence across the entire power value chain - generation, transmission and distribution.